Italy is currently in talks with SpaceX to finalise a €1.5 billion deal that would see the US-based company provide secure telecommunications services for civil and defence applications, Bloomberg reports.
The deal will cover a period of five years and will include the supply of secure communications across the Mediterranean for the country’s Armed Forces. It will also provide direct-to-cell satellite services for use in emergencies. According to unnamed sources, the deal is yet to be finalised, but the project has already received approval from Italy’s Intelligence Services and Defence Ministry. The deal has been in the works since mid-2023.
Since late last year, the European Union has officially begun work on an alternative to SpaceX’s Starlink system and its national security-focused variant, Starshield. The IRIS2 (Infrastructure for Resilience, Interconnectivity, and Security by Satellite) project aims to establish a sovereign and secure satellite-based communications system. In December 2024, the European Commission awarded a €10.6 billion contract to build the IRIS2 satellite constellation to the SpaceRISE consortium, led by SES, Eutelsat, and Hispasat. The constellation will comprise over 290 satellites in various orbits, with services expected to be operational by 2030.
By negotiating a five-year deal with SpaceX, Italy may be aiming to bridge the gap until Europe’s IRIS2 system becomes operational. With the ongoing war in Eastern Europe, the country’s Armed Forces likely view secure military communications as an urgent priority. However, critics may argue that the €1.5 billion price tag represents 14.15% of the total IRIS2 budget for just five years of service. For context, Italy is the third-largest contributor to the European Union, with its €18.6 billion contribution in 2023 accounting for roughly 10% of the EU’s total budget.
